Part 6Exempt income

Chapter 8Other annual payments

Health and employment insurance payments

735Health and employment insurance payments

(1)

No liability to income tax arises under this Act in respect of an annual payment under an insurance policy if—

(a)

the payment is a benefit provided under so much of the policy as insures against a health or employment risk (see section 736),

(b)

no part of any premiums under the policy has been deductible in calculating the income of the insured for income tax purposes, and

(c)

the conditions in sections 737 and 738 and, so far as applicable, those in sections 739 and 740 are met in relation to the policy.

(2)

Subsection (1)(b) is subject to section 743.

(3)

For the meaning of “the insured”, see sections 742 and 743(2).